Extraordinary General Meeting in Kungsleden for decision on preferential rights issue

Kungsleden invites to an Extraordinary General Meeting, to be held on 20 September 2005 owing to the board’s decision on a rights issue for Kungsleden’s existing shareholders, as previously announced. The preferential rights issue aims to create the financial strength necessary to exploit attractive acquisition opportunities ahead.

• Rights issue of up to SEK 1,001 million
• Shareholders entitled to subscribe for one new share for every five shares held
• Issue price of SEK 132 per share
• Subscription period 28 September – 18 October 2005
• Record date for participation in the rights issue 23 September 2005
• Rights issue subject to approval of an EGM on 20 September 2005

Kungsleden's business features high transaction intensity. The company has acquired 577 properties for SEK 19.4 bn since the beginning of 1999, and has divested 628 properties for SEK 8.3 bn in the same period.

Coincident with its financial statement for 2004, Kungsleden announced its ambition to acquire SEK 4-6 billion-worth of properties in 2005, and to make SEK 1-2 bn of property divestments. Kungsleden has been successful in property trading, and by 16 August, had acquired 211 properties for SEK 5.5 bn, and made property divestments of SEK 1.0 bn.

Kungsleden's perception is that the bright prospects of finding attractive acquisition opportunities featuring on the property market in the first half-year 2005 will sustain for the immediate future because of favourable interest rates and the wide selection of attractive acquisition targets on the Swedish property market. With the aim of creating the financial strength necessary to exploit attractive acquisition opportunities ahead, Kungsleden's Board of Directors has decided to consummate the above mentioned preferential rights issue, conditional on the approval of the Extraordinary General Meeting.

Participation and information
A complete invitation to the Extraordinary General Meeting is enclosed to this press release.
Registration can be made at Kungsleden’s web site, www.kungsleden.se, or according to directions in the invitation. Further information regarding the rights issue, including background and reasons, is to be found in a press release from 16 August 2005.


For further information, please contact:
Jens Engwall, Kungsleden’s CEO, phone: +46 (0)8 503 05204, mobile +46 (0)70 690 6550
Johan Risberg, Kungsleden’s CFO, phone: +46 (0)8 503 05206, mobile +46 (0)70 690 6565

This press release is available in Swedish at www.kungsleden.se